Debt Kills Entrepreneurial Dreams

People who lack sufficient capital to start a business, but who have a good idea, require financiers. And when funding takes place, they party like it's 1999. But why?

The people getting the money are thinking, "I can't believe we got all this money! Now we've got lots of breathing room to try and make this business a success - plus people will think we've made it!"

But the people giving the money are thinking, "Now we've got to keep these guys on a short leash to make sure they don't lose our money."

The biggest problem with taking on debt to start a business is - you haven't yet learned how to sell your own product! Sometimes that's because it hasn't been built yet. But often people think raising money will magically solve the sales problem. They're sorely mistaken.

It's better to start your business small, with as little debt possible, and finance the majority of your growth from the sale of your products or services. If you find you're making a surplus profit, reinvest it by expanding capacity and increasing sales staff.

If you can't profitably sell from the outset, what makes you think you'll be able to hire and train others to do it for you?

Bottom line - the most successful companies (and individuals for that matter) are the ones with the least debt. Don't get addicted to debt!!!